HUA HIN, Thailand (AFP) - – Thailand and the Philippines held talks Saturday aimed at ending a row over rice tariffs which threatens to delay a trade agreement seen as key to regional integration, a Thai minister said.
Thailand, the world's biggest rice exporter, has said it will delay the "trade in goods" agreement between members of the Association of Southeast Asian Nations (ASEAN) if the Philippines fails to agree on a proposed deal.
But the Philippines, the world's biggest rice buyer, says it cannot afford Thailand's demands.
Ministers from the two nations met at the Thai resort of Hua Hin during the ASEAN summit and tried "to find a win-win solution over rice," Thai commerce minister Porntiva Nakasai said. Both countries of ASEAN members.
"The atmosphere at the talks went well today and it is likely to end well," she said, although she told reporters that "we did not discuss numbers".
Porntiva said they would arrange further talks with related organisations.
"We hope we can find a solution in the time we have left," she said, adding that they had until the end of the year to agree on terms.
In a statement released Saturday, ASEAN leaders said they "looked forward" to implementing the trade agreement, which forms a crucial part of plans to establish an EU-style economic community by the year 2015.
The leaders' statement also "urged member states to resolve the differences at the earliest opportunity".
Philippine Trade Secretary Peter Favila said after the talks that both countries were "committed to work towards an acceptable formula".
"We dont want the member states to think that the Philippines is the one throwing in the monkey wrench," he added.
He explained that they had offered a 35 percent tariff on rice imports from Thailand, and could not afford Thailand's request of just 20 percent tariffs.
Thailand said Manila could keep tariffs at 35 percent if it committed to buying a certain volume of rice imports. But Favila said they can only commit to buying 50,000 tonnes from Thailand, lower than the request.